Whether it’s a wedding, travel, education or instant cash needs, we think of a personal loan without a doubt. It comes seamlessly to you at attractive interest rates. It’s like your all-season ally for your personal needs. So, we have outlined the benefits of personal loans. Take a look!
Features and Benefits of Personal Loan
The benefits of a personal loan are wide-ranging from easy accessibility to their numerous uses. Let’s check out each of these benefits.
Easy to Access
Personal loans are easy to access, as you don’t need to submit collateral to get them. A strong income, coupled with a credit score of over 750 is enough to get the nod for a personal loan from a bank or a non-banking finance company (NBFC). Many banks and NBFCs seek credible profiles to disburse a personal loan and other credits to boost their credit growth.
Personal Loan Amounts Range Upto INR 50 Lakh
You can get a personal loan of upto INR 50 lakh based on your income and repayment potential. The lender checks the EMI/NMI ratio before approving a loan. While the EMI stands for Equated Monthly Instalment, NMI stands for Net Monthly Income. Ideally, lenders approve when one’s EMI constitutes not more than 30-40% of their NMI. However, those earning a greater salary can be allowed a loan with a slightly higher EMI/NMI ratio.
Attractive Interest Rates
Personal loans come with attractive interest rates for those with a solid income and a strong credit history. On average, the interest rates range from 12-25% per annum. The rates can be lowered considerably in the case of pre-approved personal loans. It’s a type of loan where lenders already select individuals for disbursement based on a good income and a high credit score. The individual just needs to give consent to the offer, and it’s done! The benefits of pre-approved loans include lower interest rates and minimal to ZERO documentation
Personal Loan Balance Transfer
If you are paying the personal loan EMI at a higher interest rate, you can turn it around with a balance transfer option. With this, you can transfer the outstanding loan balance from your existing lender to a new lender at a lower rate of interest. This is one of the efficient ways to reduce the impact of a personal loan taken at a higher interest rate originally.
Personal Loan – A Good Way to Consolidate Debt
Credit cards are a wonderful product to have when used intelligently. However, insane credit card purchases can creep in sometimes and hinder you from paying the bill fully and on time. This lets the debt compound at a massive interest rate of 30-40% per annum.
While we don’t recommend such credit behaviour, we do offer plausible solutions to overcome the financial hassles resulting from the same. Taking a personal loan at a lower rate of 12-18% is one way to wipe off the credit card debt instantly.
In turn, you can pay off the loan EMIs comfortably by staying disciplined with your savings. The benefits of personal loan to consolidate debt remain incredible.
Easy Documentation Process
Applying for a personal loan is simple. You just need to submit identity, address and income proofs, along with your recent passport size photograph.
Identity Proof – PAN Card/Aadhaar Card/Driving Licence/Voter ID/Any Other Identity Proof Document
Address Proof – Aadhaar Card/Driving Licence/Voter ID/Electricity Bill/Telephone Bill/Mobile Bill/Gas Bill
Income Proof – Salary Slips for the Last Three Months, Bank Statement for the Last Six Months
Wrapping Up
The benefits of personal loan in India are explained in this article. It’s all about making an informed call on a personal loan to meet your needs. For more insightful updates, stay connected with zarooribaathai.in.
